2023 Plan of Conservation and Development Committee Meeting #5 Economic Development
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Agenda 1. Review economic development trends 2. Discuss ideas surrounding economic development 3. Discuss draft online survey 4. Review draft vision statement 5. Next steps
Project Schedule 15 months (concluding by end of 2022) Collaboration w/Town & P&Z Commission Community Engagement Existing Conditions Assessment AHP Adoption POCD Document Adoption BTD Zoning Review Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
Regional Connections • Berlin is located in the center of the state and southern Hartford County. It is between Hartford, Waterbury, and New Haven (3 of the state’s top 5 most populous cities), which are all within 25 10-miles 25-miles miles from the town’s center. • Berlin has strong regional connections. • The Hartford Line runs through the town, providing direct rail service to both Hartford (just 1 stop away) and New Haven. • Amtrak provides connections to Boston and New York City. • I-91 and I-84 are easily accessible via Routes 9 and 5/15. Rail Interstate Open Space Water
Regional Employment Nodes Berlin is proximate to a large pool of workers with excellent rail and highway access. • According to Census data: • There are approximately 265,000 primary jobs within a 10-mile radius from the center of Berlin. • There are over 855,000 jobs located within a 25-mile radius of the town • Employment corridors are noticeable along the many rail lines and interstate highways.
Immediate Region • Berlin is within 10 miles of Hartford and is home to the first train station south of Hartford. • It lies in southern Hartford County, bordering both New Haven and Middlesex Counties • The town is located less 10-miles than 10-miles from the Connecticut River and between two major interstate highways (I-84 Connecticut River and I-91)
Labor Force 12,000 11,952 Berlin’s Labor Force Connecticut River 11,800 11,650 11,600 11,421 11,400 11,338 11,200 11,000 Source: CT DOL, October 2021 • Berlin’s labor force is smaller than most of its neighbors as of October 2021. It is roughly a third the size of both Meriden and New Britain’s labor force, its neighbors to the north and south. • Berlin is home to roughly 2.5% of Hartford County’s labor force (460,531). • The town’s labor force had been rising prior to the pandemic and now sits just below 2010 levels, 600 less than the peak in 2019.
Employment Employment Change, 2010 - 2021 Berlin Meriden Rocky Hill Southington Hartford County Connecticut New Britain Plainville Cromwell Newington Hartford Middletown -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% Source: CT DOL, October 2021 • Berlin has experienced stronger employment growth relative to its neighbors as well as Hartford, Hartford County, and the state. • Employment in Berlin is now 3% higher than in 2010. • While employment within Hartford County has remained relatively unchanged since 2010, it has decreased by 0.3% across the state and by 2.2% in the City of Hartford.
Unemployment 16.0% 14.9% 14.0% 13.3% 12.0% 10.0% 9.4% 9.1% 8.1% 9.2% Hartford 8.0% 7.9% 7.8% 6.2% 6.0% 5.5% Hartford County 5.3% Connecticut 4.0% 4.3% Berlin 2.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Oct-21 Pandemic Recovery: 2019 - 2021 Unemployment Change 3.5% 3.1% 3.0% 2.6% • Berlin’s unemployment has remained well below the City of 2.5% Hartford, the county, and the state over the past decade. 2.0% 2.0% 1.6% 1.6% 1.7% 1.9% 1.3% 1.4% • The town’s labor force appears to be among the least affected 1.5% 1.0% 1.1% 1.1% by the pandemic within the immediate region. 1.0% 0.5% • Berlin’s unemployment is just 1.1% higher in October 0.0% 2021 than it was in 2019 (pre-pandemic levels). • Comparatively, the City of Hartford’s unemployment remains 2.6% higher, New Britain’s is 3.1% higher, and both the county and state remain 1.6% higher. Source: CT DOL, October 2021
Commute Flow Inflow/Outflow of Workers in Berlin (all jobs) Source: US Census Bureau OnTheMap 2019 11,251 Berlin has a positive job inflow. Outside residents • More workers come into the town work in town for work than leave on a daily basis. 1,105 8,711 residents work residents work in town outside of town
Jobs to Housing Balance Berlin’s jobs to housing ratio is in line with the immediate region. The town has a higher ratio than the majority of its Cromwell, neighbors, but it is lower than Newington, Rocky Hill and Middletown Hartford. 1.3 Berlin, Waterbury, Meriden, Greenwich Berlin’s ratio lags behind some larger job hubs within the Southington 1.5 state, including Stamford and New Haven, but is ahead of 1.0 Stamford, many others like Waterbury, Bridgeport, Norwalk, and Newington Danbury. Bristol, Hartford 1.6 New Britain Rocky Hill 2.4 0.9 1.9 New 0 Bridgeport 1 Haven 2 3 4 5 6 0.8 1.8 Norwalk Danbury, 1.2 Plainville 1.4 JOB TO HOUSEHOLD RATIO Housing Centric Areas Balanced Jobs Centric Areas More workers commuting out of the Employment centers with ample More workers commuting into the area area housing, balance of land uses Source: US Census 5-yr ACS 2014 - 2019, US Census LEHD 2019
Property Taxes Tax Rate and Tax Base Trends Source: CT Data Center, Grand List by Town, Mill Rates, 2011-2020 2020 Share of Real Property 2011-2020 Change Berlin has a relatively low tax rate compared to its neighbors, which could be an economic development FY 2022 Commercial/ Commercial/ Mill Rate Residential Industrial Residential Industrial tool to incentivize businesses to choose to locate in the town. The town’s tax rate is in line with Plainville, Rocky Berlin $33.93 76.6% 21.3% 0.2% 0.2% Hill, and Middletown but far lower than Meriden and New Cromwell $30.33 75.1% 24.8% -3.8% 4.8% Britain. Meriden $40.86 70.2% 23.9% -0.1% -1.2% While Berlin’s share of commercial and industrial Middletown $35.70 61.1% 28.7% -9.1% 11.5% property was not as high as some of its neighbors in New Britain $49.50 69.4% 18.5% -3.5% 1.7% 2020, recent development activity suggests this number will rise in the future, which could help reduce the tax Newington $38.81 71.7% 24.1% -1.8% 1.6% burden on residents. Plainville $34.56 69.9% 26.2% -0.7% 1.3% Rocky Hill $34.10 63.1% 28.6% -5.9% 2.6% Southington $29.03 82.2% 14.9% 0.1% 0.1% Mill Rates $30 $40 $50
Property Taxes 2021 Berlin Property Tax Base by Assessed Value • The Town’s 2021 total Industrial assessed value of real Utilities 6.51% property was $2.1 billion 0.17% Commercial 18.93% Forest & Open Space 0.02% Farm 0.02% Residential 69.89% Vacant 4.45% Source: Town of Berlin Assessor
Regional Considerations & Questions • Berlin’s labor force demonstrated strong resiliency relative to neighboring communities throughout the pandemic. How do we continue to successfully grow back lost jobs due to Covid? • Berlin demonstrates a healthy jobs to household balance and inflow/outflow of workers. How can the town maintain this balance while growing the economy? • Is Berlin well positioned within the region to attract future employers? What assets should we focus on for future growth?
Local Context - Employment
Employment Nodes Higher concentrations of employment are visible along the Berlin Turnpike, Route 9, and Farmington Ave. corridors.
All Businesses According to the town’s business list, prepared by the Economic Development Department, the strongest commercial corridor is clearly along Farmington Ave., which boasts the highest concentration of businesses in town. This is where most restaurant and retail businesses are located. The Berlin Turnpike is also an active, more auto-focused, retail corridor that is also home to some larger businesses. Types of Businesses Source: Town of Berlin Economic Development Department, Business List, 2021 Businesse Type Share s Industrial 95 18.2% Construction/Home Services 66 12.6% Personal Services 58 11.1% Health Care 57 10.9% Retail 52 10.0% Restaurant/Coffee 47 9.0% Shop/Brewery Professional Services 40 7.7% Auto Related 35 6.7% Other 29 5.6% Recreational 25 4.8% Agriculture 11 2.1% Bank 7 1.3% Total 522 100%
Top 10 Employers Top Employers Source: Town of Berlin Economic Development Department, 2021 Share of Company Industry Employees Town Employment Eversource (formerly 1 Electric Power Generation 1,200 11.62% Northeast Utilities) 2 Town of Berlin Government 688 6.66% 3 Assa Abloy Hardware Manufacturing 410 3.97% EuroAmerican Home 4 Home Health Care Services 287 2.78% Care Comcast Cable/TCI, Cable and Other 5 274 2.65% CT Subscription Programming Industrial & Commercial 6 TOMZ Corporation 251 2.43% Machinery & Equipment Mfg 7 Keep Me Home Pet Supplies Stores 250 2.42% Budney Overhaul and Appliance Repair and 8 180 1.74% Repair Maintenance 9 Parker Fluid Control Instrument Manufacturing 157 1.52% 10 Stop & Shop Grocery Stores 137 1.33% 3,834 37.14% • Most of the town’s top employers are located along the Berlin Turnpike. • The top 10 employers contribute to 37% of Berlin’s overall workforce. • The town is the second leading employer, behind Eversource. • Approximately 65% of the town’s employees are unionized Board of Education employees. 27% are unionized general government employees. The remaining 8% are non-union employees.
Employment by Berlin’s Total Employment by Industry Source: EMSI, 2021 Industry 2021 % NAICS Description Jobs Share 31 Manufacturing 1,992 19% 62 Health Care and Social Assistance 1,401 14% Manufacturing is the largest industry 44 Retail Trade 1,325 13% 90 Government 1,255 12% in Berlin, accounting for 19% of the 48 Transportation and Warehousing 753 7% City’s jobs in 2021 23 Construction 695 7% • Industrial uses are clearly important to 54 Professional, Scientific, and Technical Services 521 5% Berlin’s economy, as the Manufacturing, 42 Wholesale Trade 504 5% Transportation & Warehousing, 81 Other Services (except Public Administration) 420 4% Construction, and Wholesale Trade 72 Accommodation and Food Services 286 3% industries are all among the town’s top 8 22 Utilities 258 2% Administrative and Support and Waste industries by employment in 2021. 56 Management and Remediation Services 240 2% • All industries that encompass 71 Arts, Entertainment, and Recreation 223 2% heavy commercial and industrial 52 Finance and Insurance 181 2% use businesses. 51 Information 116 1% 61 Educational Services 82 1% 53 Real Estate and Rental and Leasing 80 1% 11 Agriculture, Forestry, Fishing and Hunting 41
Resident vs Town Berlin Resident Jobs Jobs in Berlin NAICS Description Jobs Share Jobs Share Workforce 11 Agriculture, Forestry, Fishing and Hunting 10 0.1% 8 0.1% 21 Mining, Quarrying, and Oil and Gas Extraction 2 0.0% 0 0.0% The town is home to a higher share of 22 Utilities 51 0.6% 20 0.2% workers in industries that cater to heavy 23 Construction 448 4.9% 667 5.8% commercial and industrial activity. 31 Manufacturing 1,148 12.5% 2,487 21.7% • Manufacturing: 12.5% of residents 42 Wholesale Trade 418 4.6% 588 5.1% work in this industry; 21.7% of Berlin jobs were in this industry in 2019. 44 Retail Trade 844 9.2% 1,042 9.1% 48 Transportation and Warehousing 230 2.5% 603 5.3% • Transportation & Warehousing: 2.5% 51 Information 210 2.3% 529 4.6% of residents work in this industry 52 Finance and Insurance 718 7.8% 265 2.3% compared to 5.3% of Berlin jobs. 53 Real Estate and Rental and Leasing 86 0.9% 51 0.4% • Wholesale Trade: 4.6% of residents work in this industry compared to 5.1% 54 Professional, Scientific, and Technical Services 612 6.7% 480 4.2% of Berlin jobs. 55 Management of Companies and Enterprises 250 2.7% 1,513 13.2% Administration & Support, Waste Management The town’s workforce significantly lags 386 4.2% 483 4.2% the resident workforce in two typically 56 and Remediation high-paying white-collar industries: 61 Educational Services 943 10.3% 236 2.1% 62 Health Care and Social Assistance 1,378 15.1% 1,249 10.9% • Finance & Insurance 116 1.0% 71 Arts, Entertainment, and Recreation 140 1.5% • Professional, Scientific, & Technical 72 Accommodation and Food Services 493 5.4% 537 4.7% Services Other Services (excluding Public 291 3.2% 407 3.5% 81 Administration) The town’s workforce significantly lags 496 5.4% 186 1.6% the resident workforce in the Educational 90 Public Administration Services and Health Care industries as 11 Agriculture, Forestry, Fishing and Hunting 10 0.1% 8 0.1% well. 9,154 100% 11,467 100% Source: US Census LEHD, 2019 * Note that these town-wide industry totals differ from the previous page. This data is from a different source and is from 2019 (the most recent LEHD data).
Where Residents Work Town # Jobs % Share Hartford 1,076 11.8% Berlin 1,021 11.2% New Britain 719 7.9% Farmington 512 5.6% Newington 458 5.0% Middletown 341 3.7% Meriden 332 3.6% East Hartford 295 3.2% West Hartford 293 3.2% Rocky Hill 287 3.1% All other locations 3,820 41.7% 9,154 100.0% Most Berlin residents have short commutes to their primary job. • Over half of working residents commute less than 10 miles to work (56%), with the highest concentration of resident jobs to the north in Hartford and the towns in between.
10 Industries were growing in Berlin prior to Berlin’s Employment Change the pandemic. 2 have grown since 2019. Source: EMSI, 2011-2021 2011 Jobs Annual % Growth • Manufacturing remains the town’s leading industry 2019 Jobs Pre-Pandemic 2019- by a wide margin 2021 Jobs 2011-2019 2021 • Growth in the Transportation & Warehousing 11 - Agriculture, Forestry, Fishing & Hunting -5.0% -0.6% industry has intensified since the start of the pandemic, which comes as no surprise with the 53 - Real Estate & Rental & Leasing +1.3% -9.0% continued national rise in ecommerce activity. 61 - Educational Svcs -0.8% -2.9% • The Retail industry appears to have recovered from the economic effects of the pandemic much faster 52 - Finance & Insurance +2.2% -0.4% than the Accommodation & Food Services industry (down 3.6% and 21.7% per year respectively). 51 - Information -5.8% -17.2% • Finance & Insurance and Professional, Scientific & 71 - Arts, Entertainment, & Recreation +1.3% -15.2% Technical Services jobs were increasing at a healthy rate prior to the pandemic (2.2% and 3.6% 56 - Administrative & Support & Waste… -1.2% -3.9% annually). 22 - Utilities -4.2% +5.2% • These are typically higher paying white collar jobs 48 - Transportation & Warehousing +6.8% +9.4% • Professional, Scientific & Technical Services 54 - Professional, Scientific, & Technical Svcs +3.6% -1.0% was the second fastest growing industry in Berlin from 2011 to 2019, behind only 72 - Accommodation & Food Svcs +0.7% -21.7% Transportation & Warehousing. It is now the 81 - Other Services (except Public Admin) 7th largest industry in Berlin. +2.6% -14.4% 42 - Wholesale Trade -0.7% -6.9% Total Employment Change 11,500 11,332 23 - Construction +1.4% -3.3% 10,929 11,000 90 - Government -0.3% -1.3% 10,500 10,371 44 - Retail Trade +0.7% -3.6% 10,000 62 - Health Care & Social Assistance -0.4% -4.5% 9,500 31 - Manufacturing +0.1% -4.4% 2011 2019 2021 0 1,000 2,000 3,000
Location Quotient (Berlin in relation to Hartford County) Source: RKG Associates, EMSI, 2011-2021 A location quotient is a metric used to highlight a local economy’s strengths and A number of Berlin’s industries are clear leaders within Hartford weaknesses in comparison to a larger economic region. County, including Arts & Entertainment, Manufacturing, Retail, Construction, and Transportation & Warehousing. Berlin’s < 0.8 indicates an under-represented within an industry. Professional, Scientific & Technical Services and Finance & 0.8 -1.2 indicates employment is in line with the larger region. Insurance industries are also emerging, with strong growth over > 1.2 indicates specialization for the area within the region. the past decade and increasing location quotients. The town can continue to foster these industries to bring more high paying jobs Size of circle represents relative 2021 employment into town and create a specialization within the region. Arts, Entertainment & Rec 2.40 2.40 Strong and Strong but Declining 2.20 Construction Advancing 2.23 Manufacturing Agriculture 2.00 2.03 1.80 1.74 Wholesale Trade Transportation 1.60 Retail Trade & Warehousing 1.58 1.49 1.48 LQ up from 1.41 1.40 1.20 in 2011 Other 1.20 Services 1.00 Health Care 0.80 0.80 0.77 Professional, Scientific & Information Accommodation 0.68 Location Quotient Technical Services 0.63 & Food Svcs 0.60 Admin & LQ up from 0.67 in 2011 0.52 Real Estate Support 0.47 0.40 Weak and 0.38 Finance & Insurance Weak but Educational 0.20 Declining Services 0.17 LQ up from 0.12 in Emerging 0.00 2011 -8% -6% -4% -2% 0% 2% 4% 6% 8% 2010 – 2021 Annual Growth
Top Employment Sectors Berlin’s Top 10 Industry Sectors (6-digit NAICS) Source: EMSI, 2021 2021 2011 - 2021 NAICS Description 3 of the top 10 6-digit industry sectors Jobs % Change in Berlin are Manufacturing related. 623110 Nursing Care Facilities (Skilled Nursing Facilities) 809 -24.5% 493110 General Warehousing and Storage 611 124.3% • Skilled nursing care facilities rank as the top industry sector in town, employing 902999 State Government, Excluding Education and Hospitals 527 -4.5% over 800 people. 903611 Elementary and Secondary Schools (Local Government) 369 -3.7% • This encompasses 58% of Berlin’s 333517 Machine Tool Manufacturing 307 -9.9% healthcare jobs. 333613 Mechanical Power Transmission Equipment 292 24.4% Manufacturing • The top 3 Manufacturing sectors 903999 Local Government, Excluding Education and Hospitals 271 -9.1% (machine tool, mechanical power 722511 Full-Service Restaurants 228 -28.9% transmission equipment, and machine 332710 Machine Shops 221 29.8% shops) combine to employ 820 people, Supermarkets and Other Grocery (except Convenience) representing 41% of the industry 445110 187 -8.1% Stores employment.
Employment Sector Growth Berlin’s Top 10 Growth Sectors (6-digit NAICS) Source: EMSI, 2011-2021 400 338 350 300 250 200 150 82 80 72 100 58 57 51 45 41 50 35 0 493110 - General 541512 - 452319 - All Other 621493 - 221122 - Electric 333613 - 332710 - Machine 221112 - Fossil 325412 - 333511 - Industrial Warehousing and Computer Systems General Freestanding Power Distribution Mechanical Power Shops Fuel Electric Power Pharmaceutical Mold Storage Design Services Merchandise Ambulatory Transmission Generation Preparation Manufacturing Stores Surgical and Equipment Manufacturing Emergency Manufacturing Centers • The general warehousing and storage sector has experienced significant growth in Berlin, adding 338 jobs since 2011, more than 4 times the amount seen in the next leading growth sector. • This sector is the reason for the Transportation & Warehousing industry’s strong continued growth over the past decade, accounting for 89% of the industry’s 381 net new jobs since 2011. • It has helped the industry rise from employing 372 people in Berlin in 2011, to 753 today. It is now the town’s 5th leading industry. • The computer systems design services sector is the second fastest growing industry sector, adding 82 jobs since 2011. This is boosting the Professional, Scientific & Technical Services industry growth within Berlin. • 4 of the top 10 growth sectors are in Manufacturing, including the highly specialized and high-paying pharmaceutical preparation manufacturing sector, which serves New England’s growing Life Sciences industry cluster .
Local Context – Development Patterns
Commercial & Industrial Zoning • Berlin’s Commercial districts are focused around the Farmington Ave. corridor and the Berlin Turnpike. • The industrial zones are primarily in the northeastern section of town, with a few running along the rail line and surrounding the commercial districts along the southern portion of the Berlin Turnpike. New Development Opportunities 3 categories: - Targeted Economic Development areas (supporting development where existing infrastructure and systems are already in place.) - Vacant Land (limited supply and existing constraints) - Redevelopment of existing older Commercial & Industrial properties Gaps with what the market demands and what zoning currently allows will be examined at a later stage of the POCD.
Commercial & Industrial Inventory Details by Land Use Source: Town of Berlin Parcel Database, RKG Associates COMMERCIAL Total Assessed Property Taxes/ Parcels Acres AV/Parcel AV/acre Value Taxes parcel Office 86 168 $133,463,290 $1,551,899 $796,685 $4,528,409 $52,656 Retail 81 141 $98,379,736 $1,214,565 $698,564 $3,338,024 $41,210 Restaurant/bar 45 24 $23,091,042 $513,134 $980,522 $783,479 $17,411 Hotel/Motel 13 23 $9,233,700 $710,285 $398,275 $313,299 $24,100 Other 175 614 $110,203,945 $629,737 $179,504 $3,739,220 $21,367 400 969 $374,371,713 $935,929 $386,339 $12,702,432 $31,756 INDUSTRIAL Industrial 268 1,204 $228,807,790 $853,760 $190,022 $7,763,448 $28,968 *These totals represent the current land uses within Berlin, as designated by the town’s assessor. They do not represent the zoning. *Actual built space (square footage) not available
Top 10 Taxpayers Principal Taxpayers Rocky River Realty Co. Land Source: Town of Berlin Assessors Office, Based on 2019 Grand List Source: Town of Berlin Assessors Office Taxable Percent of Town’s Taxpayer Assessed Taxable Assessed Valuation Valuation 1 Rocky River Realty Co. $217,066,038 9.15% 2 Corbin Russwin Inc. $27,297,870 1.15% 3 Tomz Corporation $20,976,520 0.88% 4 Cedar Brickyard $17,076,850 0.72% 5 B & F Machine Inc. $14,214,980 0.60% 6 Stonebridge Berlin Assoc. $9,363,400 0.39% 7 Budney Industries Inc. $8,917,435 0.38% Connecticut Natural Gas 8 $8,650,160 0.36% Corp. 9 Budney Overhaul $8,494,970 0.36% 224 Berlin Turnpike LLC (incl. 10 $7,711,490 0.33% Acura of Berlin) $339,769,713 14.33% • The top 10 taxpayers contribute to 14% of Berlin’s overall taxable property, according to the town’s assessors office. • Rocky River Realty Company, Berlin’s top taxpayer, accounts for 9% alone. • They own 6 parcels and 144.5 acres of land in town, with 5 of them clustered in the northeastern corner of Berlin. • Their largest land holding is a 114-acre parcel valued at $90,000,000. It is the home of Eversource’s regional headquarters and several other large commercial/industrial buildings.
Commercial & Industrial Building Stock Units by Year Built Source: Town of Berlin Parcel Database, RKG Associates Commercial Industrial Parcel Parcel Year Built % of Total % of Total Count Count Pre 1930 51 13% 5 2% 1931 – 1959 82 21% 41 15% 1960 – 1979 68 17% 54 20% 1980 – 1999 71 18% 53 20% Since 2000 38 10% 26 10% N/A 90 23% 89 33% 28% and 30% of Berlin’s built commercial and industrial stock respectively were built since 1980.
Industrial Market Connecticut/Western Massachusetts Connecticut’s industrial market has remained strong throughout the pandemic, in large part because of the continued strength of e-commerce and its reliance on Industrial Market Source: Newmark Q4 2020 Industrial Market Report large industrial distribution and warehousing facilities. • Prices of available industrial spaces within Berlin range from $2 to $8 on Loopnet, an online commercial listings website. $6/sf appears to be achievable within the Berlin industrial market, with several current listings at this price. • Over the next 12 months, Newmark projects statewide inventory to increase, vacancy to decrease, absorption to increase, and construction activity to increase. Hartford-West Hartford-East Hartford Industrial Market Source: National Association of Realtors, Q1 2021 Commercial Real Estate Metro Market Report Total Inventory New Leasing Volume Under Construction Vacancy Asking Rent Net Absorption (SF) (SF) (SF) Rate ($/SF) (SF) 94,500,000 1,620,000 800,000 4.7% $5.50 (260,000) Regional Market Activity Source: Newmark Q4 2020 Industrial Market Report Build-to-Suite Leases Enfield: Agri-Mark; 266K SF food-grade building; 2021 Windsor: Amazon; 170K SF Plainville: Ahold Delhaize; 250K SF multi-story freezer building; mid 2022 Orange: Amazon; 138K SF Amazon; 129K SF Windsor: Amazon; 1M+ SF multi-story distribution center; 2021 Bloomfield: Home Depot; 449K SF South Windsor: Amazon; 182K SF building; 2021 Waterbury: Drew Marine; 105K SF East Windsor: Parksite; 150K SF building; 2021 Putnam: Turning Point Energy; 65K SF
Commercial Market REIS Hartford Submarket: Office Office Source: REIS 2000 – 2020, Hartford Submarket $30 30% $24.5 $25 25% $19.7 $20 18.2% 20% $15 17.9% 15% $10 10% $5 5% $0 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Class A Class B&C REIS Hartford Submarket: Retail Retail Source: REIS 2000 – 2020, Hartford Submarket $20 $18.8 12% 11.1% 10% $15 8% $10 6% 4% $5 2% $0 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 Asking Rent Vacancy Rate
Local Considerations & Questions • What industries and jobs should Berlin focus on growing? • Should the town focus on attracting more businesses to reduce the tax burden on residents? • What does Berlin’s future economy look like? Understanding the important role manufacturing and other industrial industries have played in Berlin’s economy, do we want to preserve industrial properties? • Is the aging of the workforce a concern for the local economy if most Berlin employees by place of residence are coming from elsewhere and most Berlin residents work elsewhere?
Recent Successes
Economic Development Organizations • Berlin Economic Development Commission • 7 town-elected members • Greater New Britain Chamber of Commerce • MetroHartford Alliance • The MetroHartford Alliance is an investor-based economic development partnership focused on business development and growth, retaining and attracting jobs and talent in targeted sectors, ensuring a strong urban core, and promoting the Hartford Region. • Hartford Chamber of Commerce • A MetroHartford Alliance initiative: A membership organization committed to enhancing Hartford’s business and civic communities . • HYPE • A MetroHartford Alliance initiative: HYPE was created in 2006 as a young professionals networking group to attract and retain talented individuals and successful businesses in the Hartford Region. • Innovation Destination Hartford • A MetroHartford Alliance initiative: An information hub for Connecticut-based entrepreneurs, startups, small business owners, and professionals. The initiative is dedicated to facilitating connections within our entrepreneurial community and supporting startups and second-stage companies throughout the Hartford Region.
Business Development Activity 2018 & 2019: 2020 & 2021: • 306 new jobs added • 294 new jobs added • 12 new businesses • 27 new businesses • 7 business relocations into Berlin • 1 business relocation into Berlin • 2 mixed-use developments started • 1 redevelopment Source: Town of Berlin, as of November 2021 • 9 business expansions • 15 business expansions
Business Development Activity • Berlin’s business development Business Starts and Stops activity (as measured by starts and stops) tracks closely with Wethersfield and Rocky Hill. • Activity is higher in Southington, which also has nearly twice as many businesses. Town Total Businesses Berlin 2,979 Wethersfield 3,011 Newington 3,510 Southington 5,548 Source: CT Business / CT Data Center Rocky Hill 2,952
Targeted Economic Development Sites (TEDS) • The 2003 POCD created a Targeted Economic Development Site (TEDS)-based plan for specific parcels • The intention was to encourage development in places that best serve public interest, while protecting health and safety. • Supporting development where infrastructure and systems are already in place, rather than greenfields development, especially in Berlin’s many areas with environmental constraints such as wetlands, floodplain and excessive slope, the Town seeks to support “Responsible Growth” and “Sustainable Communities.” • The town currently has 13 TED sites, although many of these sites in limited in their development feasibility due to environmental constraints such as wetlands and steep slopes.
Targeted Economic Development Sites (Progress) 1: Significant wetland and floodplain area. One of the 2 areas with potential for development is under contract for sale to Clean Earth with plans for an industrial park. The other area has seen building improvements over the years with approvals in place for a limited amount of additional development. 2: Major successes here. There has been significant development in this area, including the start of the Steele Center project by Newport Realty (discussed later). Many new businesses have located here, streetscape projects have been completed, and Deming Park was redeveloped 3: TOMZ Corporation acquired additional land and has expanded its buildings. Solar arrays were constructed. 4: Land has been assembled. Redevelopment underway at intersection of Berlin Turnpike and Deming Road. Mixed use Turnpike Ridge project is under development. 5: Two projects in regulatory review process at same intersection (404 Berlin Turnpike and 550-554 Berlin Turnpike). Will include a total of 306 mixed income apartments, a hotel, and convenience store.
Targeted Economic Development Sites (Progress) 6: Deming Ridge project (Metro Realty) approved here (88 mixed income units, expected to start Spring 2022). 7: Biopellet, a manufacturing company, located and expanded a facility in this area. 8: No change 9: A small buildings sales company located here. 10: Southernmost parcel has (2) new contractor shop buildings for several tenants being constructed. (Priority Electric) 11: No change 12: No change 13: Stick Village development almost complete (4 of 5 buildings complete). The majority of commercial spaces have been successfully leased. Tasca Ford has renovated its dealership and received approval to construct a new dealership building. OSJ (Ocean State) has renovated old plaza, relocated their own store within plaza and tenant spaces are filling - new amusement/restaurant use.
Vacant Land and Applications Pending • The Town has multiple vacant parcels, many of which comprise TED sites. • Applications are pending at several of those parcels. • As with the TED sites, development feasibility is limited by environmental constraints at many of these parcels.
Local Efforts • Kensington Village • Large TOD plan surrounding downtown Berlin’s train station, with development efforts lead by Newport Realty Group (headquartered in Southington). • Made possible by a partnership with the State of Connecticut. • Promises new business and revitalization at 861, 889, 903 and 913 Farmington Ave. • First project (the “Steele Center”) has a development program including: • $15 million mixed-use project • 76 market rate apartments • 19,000 SF of commercial space • 10,000+ SF medical office space • 8,000+ SF retail space • All organized into 5 buildings • Unanimously approved in September 2019 • Public voted on the name of the project in October 2019 • Construction broke ground in late 2020 • Proposed development of a boulevard connecting the development to the Berlin Train Station. Kensington Village TOD. Source: CivicMoxie.com
Local Efforts Other development projects: • Turnpike Ridge • 220 Berlin Turnpike, near Deming Road • $13 million mixed-use project • Development program includes: • 72 market rate apartments • 18,000 SF restaurant and retail space • 4 new buildings planned; 1 commercial building and 3 apartment buildings • Construction broke ground in August 2020 • Newport Center • A development by Newport Realty Group at 848 Farmington Ave. • A 3-story 24,000 SF mixed-use building with lower level commercial and upper story residential. • Now fully leased (commercial space was listed at $15/SF NNN) • This is a success story because the space had been long vacant before being Turnpike Ridge construction acquired. Source: Hartfordbusiness.com
Local Efforts Tax Abatement Program: • The town adopted a tax abatement program based upon improvements which will increase the value of a property. This is intended to attract developers to build larger projects in Berlin. The program has been revised over the years as market conditions have changed. • Under the current program: • Projects must involve either: • Manufacturing • Office • Warehouse/distribution • Information technology • New retail developments • Restaurants • Recreation. • Tax abatements are offered from 3 to 10 years, dependent upon the level of investment within a project.
Local Efforts Building Façade Improvement Matching Grant Program: • An economic development incentive program offered to applicants who own or lease eligible property located within strategic development areas. • Up to a 50% match • up to $50,000 for façade improvements • Up to $1,500 for signage. • Program ended 12/31/21 47 façade improvement projects have been completed or were in process as of March 2021. They are all located along the Farmington Ave. commercial corridor, with the largest concentration in Kensington Village near the train station. Façade improvement projects under the current program Source: Town of Berlin, as of March 2021
2021 Ribbon Cuttings and Groundbreakings DATE Firm Location Description Notes Investement New Jobs Ja n-21 The Pho Bar 224 Berl in Turnpike New Business Res taurant 5 146 Webster Square Feb-21 Ba rbology New Business Roa d Ba rber Shop 1 Ma r-21 Cuts of Wood 201 Chri s tian Lane Expa nsion Showroom - Wood Products 33 Webster Square Ma r-21 Bra s s City Ti le New Business Roa d Showroom - Ti le 2 Ma r-21 Sa m's Food Stores 301 Berl in Turnpike Expa nsion/Remodel Conv. Store/gas station 3 Ma r-21 Steele Center - Building 1 9 Steele Boulevard TOD PROJECT $4,750,000 Apr-21 Cl utch Ca rds & Collectibles 848 Fa rmington Avenue New Business Col l ectibles 1 Apr-21 Na ti onal Sign 780 Four Rod Road Expa nsion 23,000 s quare foot addition $1,600,000 12 Apr-21 Avenue Restaurant 958 Fa rmington Avenue Expa nsion Addi tion and handicapped entrance $400,000 3 Apr-21 Budney Industries 40 New Pa rk Drive Expa nsion 10,000 s quare foot expansion $750,000 15 Apr-21 TOMZ 47 Epi scopal Road Expa nsion 57,000 s quare foot expansion Apr-21 Douglas Mech - Sheet Metal Div 816 Four Rod Road Expa nsion Expa nded into adjacent industrial condo 5 Apr-21 Murphy Roa d Recycling 655 Chri s tian Lane Expa nson 30,000 s quare foot expansion $25,000,000 15 1244 Fa rmington Apr-21 Pri s tus Avenue New Business Opened children's clothing & a ccessory s tore 2 Ma y-21 Wel lness Collective 314 New Bri tain Road New Business Opened 8 Ma y-21 LAVA 892 Fa rmington Avenue New Business Opened salon 5 1204 Fa rmington Ma y-21 Home & Ha rmony Avenue New Business Opened home décor a nd gi ft s hop 1 Jun-21 Pi cture Show 19 Fronta ge Road Reopening Reopened movi e theatre 119 Webster Square Jun-21 P & P Na i l Roa d New Business Opened nail salon 3 1244 Fa rmington Jul -21 Pa ra dise Nutrition Avenue New Business Opened healthy s hake shop 1 Sep-21 Northeast Peformance Institute 1400 Berl in Turnpike New Business Opened headquarters i n Berlin 3 Sep-21 Bungalow on the Ave 945 Fa rmington Avenue New Business Opened Home Décor s tore 2 Oct-21 Corners tone Restaurant 797 Fa rmington Avenue New Business New res taurant 8 Col es Road Brewing 817 Fa rmington Avenue New Business Brewery Oct-21 Ka der Insurance Mi l l Street New Business Ins urance a gency Oct-21 Fi tness By Design 848 Fa rmington Avenue Expa nsion Rel ocated and grow into 2,200 s quare feet 1 Nov-21 Lou & Mos Sa ndwich Shoppe 196 Berl in Turnpike New Business Sa ndwich Shoppe 4 Nov-21 The Fresh Monkee 196 Berl in Turnpike Expa nsion Grew wi thin same complex 2 120 Webster Squsare Dec-21 Somewhere Over the Spectrum Roa d New Business Opened on Web. Square Road 7
Future Considerations & Questions • Are there any other economic development tools available to position Berlin for future economic success? • In what locations should these efforts be focused? • What uses should be targeted in future development? • Does zoning match with goals/vision of future development areas? • Is more flexibility need in uses in existing commercial and industrial zones either through zoning map changes or amendments that allow added uses? • Is the BTD zone effective? Are there changes to the zone that are needed? • Are there other areas to consider for mixed-use? • Should an increase in residential density be allowed in the Kensington Village Core area 2?
Online Survey • We will launch the POCD survey this month, following closure of the Housing Plan survey.
Draft Vision Statement Berlin is a community with a small-town feel founded in a rural and historically agrarian landscape that benefits from its location at the center of the state. The town has a rich history, strong community, and provides a peaceful atmosphere for its residents. Berlin will continue to grow, but in a sustainable manner and without compromising the town’s natural resources or outgrowing its ability to provide high-quality services to its residents. Strong connections to the region and within town are highly valued by the community for all modes of travel. Berlin will balance growth against preservation of its historic landscape and village centers. The town’s village centers, and farmland are important to the history and identity of Berlin; protecting and improving areas such as Kensington Center will remain a priority for the town.
Next Steps • Launch Community engagement efforts • Develop press release and social media content • Launch online survey mid-February • Develop list of key stakeholders for interviews/focus group meetings. Continue to coordinate mapping with NEGEO • Continue economic development and housing research • Prepare housing research for next meeting
Meeting Topics through April • February: Economic Development, Housing and Affordable Housing • March: Facilities and Infrastructure • April: Mobility • Discussion and updates on Community Engagement progress will be conducted at all meetings
Next Meeting • Housing: Thursday February 24th at 6:00 pm.
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